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InsurChain: A Decentralized Insurance Blockchain Ecosystem

1 Abstract

Insurance is an essential part of the finance system and a huge market in every economy. However, issues like stereotype policies, lack of efficiency and lack of transparency are still seriously impeding the development of insurance. All these issues are in dire need to be addressed.

Insurance and blockchain have natural consistency in essence. The fundamental purpose of insurance is to transfer risks and it is featured with sociality, uniqueness, security and long-time existence. Blockchain, on the other hand, is based on consensus of P2P networks with features like tracebility, immutability, unforgeability and timestamps. So insurance and blockchain are highly compatible with each other. We believe blockchain will become an essential part of insurance and disrupt the industry completely in the future.

On basis of this belief, we are going to build a blockchain ecosystem for insurance and it is going to be named – InsurChain. InsurChain includes InsurChain Blockchain, InsurChain applications, InsurBox, etc. and open interface to allow every user to design, purchase, invest insurance and file claims which can be processed automatically. In InsurChain, no intermediaries are needed, every step is pre-programed based on certain rules and the ecosystem can be fully operating on its own. This will be a brand new insurance blockchain ecosystem.

Founding members of InsurChain have ample experience in insurance operating and investing with deep understanding of the industry. We are also enthusiasts of blockchain who believe blockchain will re-shape the old industry in the near future and we will be in the front seat to see it coming.

2 Insurance Market

2.1 Potentials

Insurance is a huge yet fast growing industry with unlimited market potentials. Global premium income is 4.8 trillion USD in 2017.

With the development of economy, insurance demands are growing rapidly all over the world. According to Global insurance review 2017, and outlook in 2018 from Swiss Re, the world economy will grow on a steady rate in 2018 and so will insurance premium. Global non-life premium will grow at 2.2% and 3.0% in 2017 and 2018 respectively. Global life premium will grow 4.8% and 4.2% in 2017 and 2018 respectively. Emerging markets, especially those in Asia, will be the boost for premium growth. Premium income in China reached 2.31 trillion RMB (360 million USD) in the first half of 2017, a 23% increase compared with the same time last year.

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2.2 Challenges

Although insurance is still developing rapidly on a global scale, it's development has encountered numerous challenges. The major challenges insurance are facing are as follows:

A) Too many intermediaries. Traditional insurance is highly reliant on intermediaries. Most of the premium has been used to cover channel costs and customers couldn’t be properly insured.

B) Lack of data protection. Insurers are in possess of huge amount of customer data including private data such as policy information, family members and phone numbers. Insurers are not serious on protecting customers’ privacy and caused customers troubles.

C) Misleading in marketing. Insurance agents or salesmen are lying or withholding information when trying to convince consumers to buy their policy. This has damaged the rights of consumers as well as the reputation of insurance.

D) Lack of innovation. Most of the policies insurers offering are similar in every aspect. It can address certain problems consumers are facing, but it can’t suit all personalized demands.

E) Moral hazard. Will consumers be less careful when they know they can get covered? Probably yes, and it placed insurers in a difficult position. Moral hazard brings losses to insurers while brings no benefit for consumers.

2.3 Opportunities

Blockchain can be a great tool to alleviate these problems. Blockchain is a distributed ledger technology with features such as transparency, immutability and unforgeability. All these features are perfectly matching the nature of insurance. By leveraging blockchain, insurers will be able to collect consumers’ data on chains rather than asking them to provide materials repeatedly, smart contract can replace human labor in claims and all the fraudulent behaviors can be prevented. All the transactions on blockchain will be immutably recorded and traceable, so it can help insurers to accurately profile each customer and offer personalized pricings.

Blockchain will be the underlying technology for the next-generation insurance and the engine to boost insurance development. Blockchain-based insurance will be a vital part of the industry and maybe even redefine insurance.

We are planning to build a blockchain-based insurance ecosystem, where every user can design, purchase and invest in insurance. This ecosystem will be able to satisfy customer needs, reward those who contribute ideas and innovations, and eliminate intermediaries in traditional insurance, lowering operation costs. Take health policy as an example, InsurChain ecosystem can save up to 70% cost for insurers.

3 Solutions

3.1 Products and processes

We will build a truly decentralized, peer to peer insurance marketplace based on InsurChain platform and keep it functioning properly by making a series of rules.

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Innovations InsurChain will provide include:

A) Users can directly purchase insurance products designed by professionals and insurers by spending InsurChain tokens. They can also post their own personalized demands in the system with a certain token cost.

B) When a new demand releases, InsurChain system will match it with underwriter(s). Underwriter(s) can be insurers or investors.

C) Users pay with tokens and underwriter also pays certain number of tokens as margin. And an electronic policy will be signed with smart contract.

D) When an agreed event triggers a claim, the smart contract will automatically process payment and reimbursement.

E) If either party has doubts regarding to the result, a voting process will be automatically launched and the disputes will be settled through a poll.

3.2 Structures and features

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A) Policy design

Everyone on the InsurChain platform can issue an insurance policy. Ordinary users can do this by filling out a pre-set form. For advanced users, such as actuaries, they will have higher authority to design a more complicated policy. InsurChain will launch a tool to test every new product and make sure it is applicable and compliant.

B) Policy rating

We will record all the data of each policy on InsurChain, including policy details, sales and claims and all the data is immutable. And we will design a rating system to rate each policy from various angles and conditions. So, consumers will be able to find the most suitable one. And the rating is dynamic, changing from time to time based on customer feedbacks.

C) Distribution

All the policies on InsurChain are signed through smart contract. It is safe, verifiable and can be launched by anyone. All the trades are encrypted and occur in real time. Third party platforms can help with the distribution of each policy and when they successfully distributed a policy, they will be rewarded with InsurChainCoin tokens.

D) Claims

Simple claims can be settle with the help of smart contract. InsurChain will introduce third party adjusters to handle more complicated claims. Users will be able to upload relevant materials for his claims and the materials will be cross checked and recorded on the chain.

E) A voting system

InsurChain will introduce a voting system in the future. The voting system is designed to resolve disputes in claims. If either policyholder or underwriter is unsatisfied with a smart contract settlement, they can spend InsurChainCoin tokens to file a vote. The vote will invite credible users to make the vote. Algorithm will make sure those with most credible behaviors will be invited.

4 Applications

Insurance will be covering every moment of people’s life and so will InsurChain providing services for every scenario. For now, we have made plans to develop some applications. All the developers around the world are welcome to join in the InsurChain ecosystem and deliver more apps for users.

4.1 InsurBox

InsurBox is an important channel to connect individual users and insurance products. InsurBox provides services like digital wallets, policy management on blockchain, decentralized apps and insurance supermarkets etc.

The digital wallet system in InsurBox can help users create wallet accounts, deposit and withdraw INSUR tokens, transfer INSUR among different built-in apps and to other users. Users can also authorize InsurBox to manage individual policy papers. Users’ insurance-related data will be stored on blockchain and they can authorize proper use of the data through private keys. Aside from insurance data, InsurBox will add more data port to collect more data such as ID, physical condition and health management. Users can authorize the use of those data to eliminate data inconsistency, in the meantime, their privacy can be well protected by blockchain technology.

InsurBox also contains decentralized application modules which provide port for different decentralized applications. Those applications, including insurance apps, can be uploaded in InsurBox for individual users. For example, we will launch apps based on InsurChain smart contract such as index policies, P2P healthcare, baby angels etc. Third party developers can also launch financial apps on InsurBox.

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In the meantime, we will also partner with insurance companies to provide traditional insurance products in InsurBox supermarket. After purchasing, users’ information such as underwriting and policy paper will be recorded on blockchain. The recorded data is transparent and immutable. InsurBox can provide assistance in underwriting and claims through providing information for users and insurers.

InsurBox has already acquired hundreds of thousands of active users, they are the foundation for future development of this project.

4.2 BizGuard – smart contract based insurance solution for enterprises

Scenario-based on-demand insurance has been gaining popularity in recent years. It usually works this way, a company needs a customized insurance solution to cover a specific business scenario, and an on-demand InsurTech startup will collect data from them and find out the insurance demand that has not been satisfied by insurers. Then, the startup will design a customized solution to address this demand and seek underwriting from insurers. This approach has helped to improve the experience of on-demand insurance, but it is still not simple enough.

Actually, most of the scenario-based insurance can be put in the form of a smart contract. And that is what BizGuard will achieve.

Take house sharing business as an example, companies like Airbnb can launch an accident policy on InsurChain, all terms will be predetermined into a smart contract. If an accident occurs, tenant can upload photos of the scene and a qualified third party will exam them and process claims. The timestamps on the chain can be used to verify the validity of accidents.

4.3 PalsGuard – insurance solution for communities

PalsGuard works in P2P insurance models, just like Friendsurance from Germany. We will build a community to let people with the same demands to share risks and it will cover property, liability and health demands.

The essential part of PalsGuard is to build a trust-based community. The best way to do it is to build it among friends and relatives. Everyone in the community shall pay a certain tokens as premium. The premium will be divided into two parts, one is to purchase cover from insurers, and the other will be used as a cover pool. Small claims will be paid from the cover pool and when the cover pool runs out, insurers will provide coverage. The remaining tokens in the cover pool will be returned to every community member.

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The traditional P2P insurance still requires a centralized management and it may bring risks. In PalsGuard, we will build a decentralized P2P community and make the cover pool more secure. With the help of smart contract, we can also achieve automatic claim payment.

4.4 SelfGuard – marketplace for personalized insurance

As InsurChain ecosystem evolves, we will launch a marketplace for personalized insurance to satisfy individual insurance demands. Users can post their own needs, no matter in structured form or unstructured form. Insurers on the chain will provide an estimation of the demand, including prices, expected profits and potential risks. Then every service provider on the chain can bid to become the underwriter for this demand. When a deal is made between user with needs and underwriter, InsurChain will record the deal and provide a smart contract to bind the deal. Insurers can also be an authoritative third party judge and provide opinions when disputes happen.

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For example, meteorological index insurance is a policy that reimburses policyholders when a certain meteorological parameter, such as temperature, rainfall and snowfall. It is easy to implement, but insurers usually don’t want to spend too many resources for this kind of policy.

However, SelfGuard can implement this policy on InsurChain and satisfy the needs for such policies. Users can spend InsurChain tokens to purchase meteorological index policies such as high temperature insurance, smart contract oracles will monitor official temperature releases and when the predetermined temperature is reached, the claim will be automatically paid.

4.5 Blockchain-based insurance cards

Insurance card is an invention on InsurChain, all the transactions can be traced on the chain and customers can use blockchain-based insurance cards to exchange policies. Therefore, everyone can be a distribution channel of a certain policy.

For example, insurers can put a flight policy on InsurChain, anyone who has purchased it can send it to other users on chain as a gift or at a certain price. Since all the transactions are recorded, when a claim is filed, insurers can easily verify the validity of the policy and process the claim payment quickly.

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4.6 Insurance blockchain points

Traditionally, insurers will issue bonus points when customer sign a new policy or renewal. Those bonus points can be used to buy things in their own platform or from a cooperated third party platform. However, most of the bonus points can only be used in a certain insurer’s platform.

InsurChain has designed a solution to solve this issue and make bonus points from different insurers exchangeable, therefore improving the liquidity of bonus points.

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For example, an insurer wants to attract customers by offering bonus points, but they don’t have enough manpower to operate online markets, they can register on InsurChain and make their bonus points exchangeable with points from other insurers which can be used in many e-commercial stores. So, this insurer can attract more customers without extra cost to build an online markets.

InsurChain-based platform can also be used to develop more decentralized applications.

5 Technical Structures

5.1 Basics

We will become the service provider of a business-level blockchain infrastructure and develop a series of blockchain-related products and services. On one hand, we will build an enterprise-level blockchain platform, on the other hand, we will develop high-scalable applications along with users.

5.2 Goals of InsurChain

An ideal risk trading marketplace should allow the store, trade and transfer of risk assets. InsurChain leverages technologies like blockchain, digital encryption and virtual machine to digitalize potential risks in real world, uses smart contract to deploy automatic management of digital assets, stresses the importance of security of data and contracts, introduces arbitration to ensure fairness of contract execution, and therefore is able to build an automatic, secure and fair environment for the management and transaction of digital assets.

A) Digitalized risk assets

Blockchain is featured with decentralization, traceability and transparency, users can have their risk assets digitalized through blockchain and mapped from real world to cyberspace. The digital assets will be protected by law if it is legally registered in compliance with regulation.

There are two types of digital assets in InsurChain – account assets and contract assets. Account assets are recorded in blockchain system and can be identified by smart contract and client-end application. Contract assets are recorded in the database of smart contracts and can only be identified smart contract-compatible client-end application.

B) Smart contract system

The concept of smart contract can be traced back to 1995 when legal scholar Nick Szabo first mentioned smart contract in his online posts. He describes smart contract as follows:

“New institutions, and new ways to formalize the relationships that make up these institutions, are now made possible by the digital revolution. I call these new contracts "smart", because they are far more functional than their inanimate paper-based ancestors. No use of artificial intelligence is implied. A smart contract is a set of promises, specified in digital form, including protocols within which the parties perform on these promises.”

With the emergence of blockchain, the ownership of digital assets can be effectively registered, therefore smart contract technology can be more widely applied.

The objectives of InsurChain smart contract system is to offer usability, security and fairness.

Usability means being friendly and easy to use for community developers and supporting major coding languages.

Security means a consensus algorithm to secure users’ account assets. User data is protected by IPFS verification and third-party data which can trigger smart contract execution will be provided through oracle network. We have also designed a Cooperative Trusted Computing technology to make contracts executed in a off-chain sandbox network where the interests of each contract party can be protected.

Fairness means an arbitration mechanism to enforce the proper execution of contracts.

C) Applications and Ecosystem

InsurChain will focus on the promotion of developer ecosystem in ways of providing developing tools, guides, tutorials and funds in order to implement an intelligent risk management and trade network. We will offer supports and awards for developers who make contributions to the following InsurChain applications and ecosystem.

  • Node applications

Full-functioning application for all PC nodes

Specific functioning application for specific PC nodes

Mobile (for Android/iOS) and Web apps which require no synchronization

  • Hardware wallet

  • Blockchain browser

  • SDK development kit

  • Smart contract compiler

  • Decentralized applications

Smart insurance advisors

Risk pricing

Risk asset exchange

Percentage play

Market prediction

Data exchange

Contract store and computing provider

Arbitration vote

Credible computer

Credit loan

5.3 InsurChain Algorithms

A) Consensus algorithm: DPOS

Delegated Proof of Stake (DPOS) means INSUR token holders can select N (the exact number will be updated in following versions) block producers through an approval voting system. The selected block producers will be equally given the rights to produce blocks on InsurChain. If any block producers cannot perform his duties, they will be replaced by newly selected ones.

DPOS proved to be a highly applicable and efficient algorithm in projects like BTS and STEEM. Under normal conditions a DPOS blockchain does not experience any forks because, rather than compete, the block producers cooperate to produce blocks. In the event there is a fork, consensus will automatically switch to the longest chain.

The block producers are selected by INSUR holders, therefore, they are employed by INSUR holders and represent all INSUR holders’ interests.

DPOS-based InsurChain is expecting a 10,000 TPS trade volume with a maximum confirmation of 60 seconds. It is designed to support large scale user and commercial applications.6

In the InsurChain testnet, we will choose DPOS algorithm and through a pluggable architecture, the consensus algorithm can be switched to POS, POW, PBFT etc. By doing so, we can be technically prepared for future community development in case of a new consensus algorithm is required.

Pseudo-code is as follows:

for round i
    // Select block producers through voting
    witness_list = get N delegates sort by votes 
    // Randomize producer sequences
    witness_list = shuffle(witness_list) 
    // Loop until round i block production is finished 
    do until round i finished     
     slot = global_time_offset / block_interval
        index = slot % N
        // At this node
        if witness_list[index] exists in this node 
            // block produced
            generateBlock() 
        else
            skip

witness_list: list of witness

B) Smart contract: InsurContract

The smart contract system of InsurChain includes a virtual machine called Insur-VM, an oracle network called Insur-ON, a data security network called Insur-DN and a sandbox network called Insur-CN.

  • Insur-VM

Insur-VM includes a set of code system and compiler. Developers of Java, Python and other major coding languages can start writing smart contracts without learning new languages. The compiler will translate the languages into Insur-VM code sets. This mechanism would lower the barrier for InsurChain smart contract and enable a wider expansion of InsurChain ecosystem.

Smart contract is a set of codes which can recognize data types, have access to user data on IPFS and third-party data on an oracle network and realize basic numeric calculation, logical operation and process control.

Smart contracts can also be combined and embedded with each other to describe complicated insurance policy terms.

Smart contracts will be stored in the database of smart contract system.

  • Insur-ON

The objective of Insur-ON is to transfer off-chain third party data on InsurChain through Oracle networks. The application scenes of smart contract require a data exchange between on-chain and off-chain. A data channel is needed to fulfill the combination of off-chain business process and on-chain smart contract and trigger smart contract. Applications needed such channel include decentralized exchanges, decentralized insurance system, market prediction system and automatic claim system.

We will leverage oracle networks to transform unstructured data in the real world into structured data in digital world. Types of structured data can either be the type of InsurChain smart contract system or the types users have configured. All the data will be stored in json format.

The secure transmission of third party data can be realized through consensus mechanism. InsurChain will offer incentives for credible data sources and replace suspicious data sources through a voting system.

  • Insur-DN

The core idea of Insur-DN is to protect the ownership of data which means user data will always be inaccessible unless you are approved by data owners. It is made possible through an asymmetric encryption and decryption. Data will be stored in an IPFS protocol based distributed network.

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IPFS, abbreviation of InterPlanetary File System, is a peer-to-peer, decentralized hypermedia protocol to make the web faster, safer, and more open. It is aimed to complement and even replace HTTP protocol and build a faster and securer Internet.

Nodes on a distributed data network should provide storing and bandwidth resources. They will be rewarded with INSUR tokens, and it is an incentive to encourage more participant to become a node.

  • Insur-CN

The core objective of Insur-CN is to provide a cooperative trusted computing system. Execution of smart contracts will take place in a sandbox (virtual CPU) network. The sandbox verifies the signature of data and codes and can only read data without the authority to write. Data and codes will be liberated after the execution of smart contracts, and it is designed so to protect the interests of data owners, strategy owners and computing parties.

Most of the Individual and organization data and risks in insurance industry are highly sensitive, therefore the information shall only be accessed with authority and not be stored in public databases.

image

Sandbox network nodes shall provide computing environment for the system. InsurChain will offer INSUR as incentives so as to encourage more parties joining the cooperative trusted computing and enable smart contract to generate more values through cooperative working.

Arbitration is a mechanism to solve the fairness issues caused by contracts and policies in real world. Users can file an appeal against certain contract executions at a cost. If arbitration result is in filer’s favor, smart contract system will recalculate the execution.

5.4 InsurChain structure

InsurChain structure is designed to provide a secure, credible, efficient and friendly underlying technical foundation. The structure is as follows:

image

Application structure:

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6 InsurChain Coin

InsurChain Coin (INSUR) is the crypto token within the InsurChain system. Users can spend a certain number of InsurChain Coins to get InsurChain services and products. The rate will be determined and charged by block recorder.

Other than that, InsurChain Coin is also a digital asset for users. They can spend it in claims, distribution and voting to get a better service. For example, when an insurers want to promote its policies, they can offer InsurChain Coin as reward for distribution channels.

InsurChain Coin’s functions will be increasingly enriched when the whole InsurChain system grows.

Now we generate InsurChain Coin based on ERC20 protocol and put them into application. When the InsurChain blockchain is developed, we will migrate the whole system to our public blockchain.

Total supply of InsurChain Coin is 20 billion, and they are initially distributed as follows: 8 billion tokens (40%) for investors; 2 billion (10%) for cornerstone investors; 3 billion (15%) for operation funds to support the community; 3 billion (15%) for developers of InsurChain as rewards; 4 billion (20%) for founding and developing team.

Operation funds of InsurChain will be administered by a financial management team from InsurChain team. The financial management team will be in charge of operation expense and crypto currency management. Operation expenses include salaries, rents and daily expenses, etc.

7 Ecosystem

Global Ecosystem Development Initiative

We will build an International team to operate globally. The initiative will encourage blockchain enthusiasts and developers to participate in InsurChain and work together to boost its development. Those who have made remarkable contributions to InsurChain will be rewarded with InsurChainCoin.

Synergetic development of insurance industry

Operation funds will continuously encouraging industry partners to join and operate in InsurChain ecosystem. When InsurChain is filled with outstanding developers, major insurers and high quality users, we believe this decentralized network can help make insurance great once again.

In this ecosystem, everyone in the insurance can find its place. No matter it is insurers, users, data providers or other third party service providers.

8 Governance

XLAB Foundation LTD. is a non-profit foundation organization founded in January, 2018 in Singapore. Singapore is a country with stable and sophisticated laws and financial environment. According to laws in Singapore, XLAB is founded to support events of public and private interests, and is not allowed to pursue business profits.

XLAB Foundation is founded to operate InsurChain and the purpose is not to make profits but to introduce disruptions for the industry. Operation fund will be managed by leaders in the InsurChain team. All the revenues earned will be allocate to cover operation expenses on InsurChain.

9 Team

InsurChain team is made by senior officers and developers of insurance company, InsurTech investors and blockchain experts. All core members have over ten years’ experience in insurance.

Shine Yang, head of the InsurChain’s Chinese district, is also the co-founder of a venture capital. Since it founded in 2015, it has been operating as a research-driven investment institution and focus exclusively on digital insurance. Mr. Yang is one of the first batch of investors in China who systematically studies and invests in digital insurance and he is now known as one of the best investors in digital insurance.

Mr. Yang’s team has surveyed and researched hundreds of insurance companies and InsurTech startups both domestically and internationally. They have sorted out all the patterns and features in the combination of insurance and technology. They has invested in various startups since 2015 and most of those invested startups have closed next round of funds and grown significantly within two years.

The strategic partner of InsurChain also offers media and community services for the digital insurance industry. InsurView is its media platform where 100,000 subscribers can learn the trending news from global InsurTech community. Also publishes two industry reports for digital insurance every year. And all these reports have offered great help for the InsurTech community.

Frank Lee, co-founder of the Chinese district, was VP of Taiping Insurance Beijing Branch and is founder of Footprint Interactive. He has been in insurance for more than 10 years and deeply understands the problems insurers are facing. He founded Footprint Interactive in 2016, which has become a service platform for over 500 thousand high-end insurance agents. He co-founded Warp Speed Fintech in 2017.

Core members

Shine Yang - Head of the Chinese District; Co-founder of Venture Capital; Director Manager at DreamShops.

Frank Lee - Co-founder of the Chinese District; Former VP at Taiping Insurance Beijing Branch; Founder of Footprint Interactive; FMBA at CUHK.

Patrick Yue - Tech Leader for InsurChain; Former leader in Baidu News.

Satou Yousuke - Former insurance executive; Expert of blockchain application in insurance.

Dong Wu - Blockchain expert; Worked in Yahoo Research Center in China; Master of Computing at Tsinghua University.

**Jack Xin ** - Expert in digitalization solution for traditional insurers.

** Xing Liu** - Former operational director at Taiping Insurance Beijing Branch.

Xian Xie - Big Data expert for insurance; Leader of Data Center at Taiping Insurance Beijing Branch.

Advisory Board at InsurChain

Li Xiaolai - INBlockchain

Lin Jiapeng – Founder of LinkVC

Qi Ning – Founder of SF.GG, core contributor at Github

Lu Rongde – Founder of Contract VC

Zhang Yijia – Founding member of Google Assistant, MSc of Computing at CMU

Robin Kiera –InsurTech thoughtleader, former board consultant at Allianz

Cornerstone Investors

INBlockchain

LinkVC

Star Chain Capital

Warp Speed Capital

Contract VC

SkyChee Capital

10 Timeline of InsurChain blockchain

The development of InsurChain is a combination of short-term construction and long-term improvement. With the increasing spread of blockchain and smart contract, we will implement the following strategies step by step.

Year 2018

Update technical whitepaper 1.0 in May;

Complete the development of mainnet alpha version by the end of August;

Launch test net in September;

Release details on possible supernode strategy in Q4;

Develop smart policy virtual machine in Q4;

11 Risk disclosure and disclaimer

Risk disclosure

Systematic risk

Systematic risk means those might cause fluctuations to all global markets. For example, policy risks, the regulations on blockchain projects and financings are not clear in most countries. So there is a chance investors and participants of the program being impacted by new regulations.

The blockchain markets also has potential risks. The digital assets may have been overvalued, investors may lose money or miss their expectations.

Systematic risks also include force majeure such as natural catastrophes, cyber-attacks and political turbulences.

Compliance risks

Digital assets have experienced and will continue to experience drastic fluctuations. Individual investors may suffer significant losses due to lack of experience. And since there is no regulation on this yet, investors may need to bear this risk.

Regulation risks

InsurChain is aiming to connect every one globally with insurance. However, since insurance regulations are different from country to country, the project might encounter hindrance in some areas. InsurChain will do its best to cooperate with local authorities, but the risks shall be recognized.

Competition risks

With an increasing number of players entering blockchain, the market is getting competitive. InsurChain need to stay the best to survive this competition. But the trend of future competition is still unclear.

Team risks

InsurChain team is comprised of senior investors, insurance officers and developers. Stability of the team is the cornerstone for InsurChain development. If a core staff leaves the team, it may impede the development of InsurChain.

Security risks

Cryptocurrencies is an anonymous digital asset. It can be attacked by hackers, be used in money laundering and be involved in criminal activities. InsurChain may face uncertainties in the future. Investors should be fully aware of that before participating.

Disclaimer

This whitepaper is only a reference for InsurChain and provide no suggestions on InsurChainCoin trade. Anyone who wish to trade InsurChain Coin should be fully aware of InsurChain ecosystem and trade on his own will.

InsurChain team guarantees the accuracy and authenticity of contents in this whitepaper and will be putting continuous efforts to improve the InsurChain ecosystem. Details of certain parts of ecosystem might change in order to improve InsurChain ecosystem.

Updates will be released on InsurChain official website.

InsurChain team is not responsible for losses investors suffer due to the following causes:

A) Trade solely made on the information provided in this whitepaper; B) Misunderstanding of the information in this whitepaper; C) Any behaviors result from this whitepaper.

InsurChainCoin is a token for the InsurChain ecosystem, it’s an asset to exchange for functions in the ecosystem, not an investment-related asset. Possession of InsurChainCoin does not grant ownership, right of control or decision to InsurChain platform.

As a cryptocurrency, InsurChainCoin is not any of the following kind:

A) Fiat currency; B) Security; C) Equity; D) Share, bond, bill or any other legal paper.

The price of InsurChainCoin shall be determined by the market and following applications. It may end up with nothing. InsurChain team promise nothing on InsurChainCoin price and will not be held responsible for the consequences caused by InsurChainCoin depreciation.